Ensuring the best possible outcomes begins with a rigorous assessment process.
Typically, we work with mid-cap private corporations that have non-bankable capital requirements (they can’t secure their capital requirements from traditional financing institutions like banks). That said, we are more than willing to accept applications from both small and large-cap companies as well since they often face the same challenges in securing capital.
Furthermore, we are also open to applications from all sectors of the economy. As long as we are confident that we can hedge our risk in a non-correlated asset that produces a non-corelated return on our investment, then we are open to discussing all opportunities. If, however, we are unable to appropriately hedge our risk, then we would not be in a position to move forward.
Six key points that will be considered in determining qualified candidates.
At Robinson Capital, the following six points are critical factors in all our capital funding decisions. All equally important, they are:
Amount of Capital Required.
Be realistic about the number. By that we mean do not aim too high or too low either. For an investor, it is a nightmare to find out that a company to which we have provided capital funding has run out of the money invested and is seeking more.
For What Purpose – Use of Proceeds.
We look at the Use of Proceeds as the road map, and our team reviews the way the company will be deploying the capital. This is simply good business. It makes us comfortable, keeps your business on track, and enables future fund raising to be easier through us.
Schedule of Use of Proceed.
It’s rare that a capital raise is completely required for deployment tomorrow and it is not uncommon that different amounts will be required at different times. That’s fine. Be clear on when money is really needed, how much is required within that time frame, and when the subsequent tranches will be required. Be clear. Be specific. Think it through.
Securing our Return on Investment.
If you’re a new company for us, and receiving capital in tranches, then we may wish to secure the return on investment from each tranche as deployed.
Repayment of Principal Schedule.
What you put forth has to work for you, so as not to overburden your cash flow, and it has to work for us as well. Make your first attempt as realist as you can, and we will use your schedule as the basis for determining the final Repayment schedule should we proceed through to the funding stage.
Your Capital Investment.
To be clear, we are not talking about any broker fees that you may be paying or professional fees paid for a business plan. We need to see that you are contributing some of your capital to this endeavour. That you also have some “skin in the game”.
For example, if you want $100M of financing, we need to see what cash you’re putting up right now that will be used with ours in the Use of Proceeds. This isn’t cash that you’ve invested in your company over the past few years or few months. This is cash – your cash — that’s ready to deploy in this next phase of your business. The larger the number, as a percentage of your capital requirement, the easier it will be to secure the required capital.
We are all about financing the future of your business, not reconciling the past.
We are not in the business of providing capital to start-ups and focus exclusively on investing in established businesses. We do not invest in situations where the capital will be used to repay past debts or to repay shareholder loans. We are looking from today forward only and funding growth opportunities.
If you’re comfortable with our parameters, then we’d be happy to hear from you.
To move forward, please submit a brief executive summary of your opportunity, complete with your contact information. Also as part of your submission and in a separate document, please address the 6 key points outline above. We will review complete submissions only and, should we move forward, we can review a full business plan at the appropriate time.
This document is effective as of February 27, 2020, and replaces all previous documents that outline our way of doing business. This document may be replaced and/or updated without notice. It is best to confirm that you have the most current document. © Wes Robinson 2019-2020.